Gold Road Resources and Gold Fields Limited have announced a 50:50 joint venture to develop and operate the Gruyere Gold Project in Western Australia.

Gold Road’s Managing Director and CEO Ian Murray said he was pleased to partner with Gold Fields to develop Australia's newest goldfield, located approximately 200 kilometres east of Laverton.

“We are very pleased to have concluded a highly accretive transaction for shareholders, and to have Gold Fields as our chosen joint venture partner, and with who we look forward to having a long and successful partnership.

"The highly experienced Owner’s Team that we have established over the past 18 months will be the Team that will develop the Gruyere Gold Project under the guidance and leadership of Gold Fields.

"This partnership further strengthens our strong balance sheet, allows us to significantly de-risk the Gruyere Gold Project, and enables us to pursue our growth plans much sooner than we may have under alternative funding options," Ian said.

Gold Fields CEO Nick Holland said he was excited to partner with Gold Road and build their portfolio in Australia.

“Australia is a key part of our business and our largest cash generator and this deal enhances our portfolio and expands our exposure to a new and emerging goldfield in Western Australia.

"We are excited about partnering with Gold Road and are hopeful this is the start of a multidecade, mutually beneficial relationship and see significant potential synergies in resourcing, intellectual property, procurement and technical skills," said Nick.


  • Purchase consideration comprises A$350 million in cash payments and an uncapped 1.5% net smelter return royalty after production of 2 million ounces
  • Gold Road retains >50% economic interest in the Gruyere Joint Venture through the 50% direct ownership and the 1.5% net smelter royalty
  • Gold Fields to fund up to 10% of cost overruns on the Gruyere development budget and provide funding support for any project-level guarantee requirements
  • This transaction fully funds Gold Road for development of Gruyere and to accelerate exploration activities across both its 100%-owned North Yamarna tenements and the 50%-owned South Yamarna tenements
  • Gold Road retains exposure to 50% of the gold production and cash flow from Gruyere together with the 1.5% net smelter return royalty, 50% ownership of the Gruyere JV tenements, 100% ownership of North Yamarna and 50% of South Yamarna
  • Joint Venture is committed to progressing to the project construction phase early in 2017
  • Transaction subject to FIRB and related approvals

View the full announcement here.